A letter to the editor of the Financial Times agrees.
"This situation has been caused, in part, by the unprofessional, fatalistic and blasé attitude to contract risk management of some senior executives in the UK construction industry."
By no means the first company brought low by delusion (I've talked some about Enron on this blog, as well as in my book on organizational intelligence), and probably not the last.
As it happens, the Home Secretary was at the London Stock Exchange today, talking to female executives about gender diversity at board level. So I thought I'd just check the gender make-up of the Carillion board. According to the Carillion website, there were two female executives and two female non-executive directors in a board of twelve. So does it really make sense to have twice as many men as women in the boardroom?
However, given that Carillion was the beneficiary of some very large public sector contracts, we could also talk about delusion and poor risk management in government circles. As @econtratacion points out, "the public sector had had information pointing towards Carillion's increasingly dire financial situation for a while".
Martin Bentham, Amber Rudd: 'It makes no sense to have more men than women in the boardroom' (Evening Standard, 15 January 2018)
Mark Bull, A lesson on risk from Carillion’s collapse (FT Letters to the Editor, 16 January 2018)
Nils Pratley, Blame the deluded board members for Carillion's collapse (Guardian, 15 January 2018)
Albert Sánchez-Graells, Some thoughts on Carillion's liquidation and systemic risk management in public procurement (15 January 2018)
Explaining Enron (January 2010)
Organizational Intelligence and Gender (October 2010)
Delusion and Diversity (October 2012)
Intelligence and Governance (February 2013)